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Economy of force is one of the nine Principles of War, based upon Carl von Clausewitz's approach to warfare. It is the principle of employing all available combat power in the most effective way possible, in an attempt to allocate a minimum of essential combat power to any secondary efforts.
Therefore, the model assumes that war is the undesired outcome for both actors, and only under the correct conditions will war occur. This is different than economic or other political models of war which propose that war can have a positive net utility, or provide benefits to the victor that are greater than the losses of the defeated.
"The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside. The aim of this chapter is to provide an outside view—a lens—that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in." [31]
War usually leads to a shortage in the supply of commodities, which results in higher prices and higher revenues. Regarding supply and demand in terms of economics, profit is the most important end. During war time, "war-stuff" [15] is in high demand, and demands must be met.
Scientific Management: Early Sociology of Management and Organizations (2003), reprints Shop Management (1903), The Principles of Scientific Management (1911) and Testimony Before the Special House Committee (1912). White, Arnold. Efficiency and empire (1901) online edition, influential study regarding the British Empire
Holland has imposed EPTs in 1916. War profit was identified as any profit that surpasses the average profits of the previous three years. The structure of the EPT was designed progressively, with rates varying from 10% to 30%. Additionally, under certain conditions, a 5% capital allowance was permissible. [citation needed]
A war economy or wartime economy is the set of preparations undertaken by a modern state to mobilize its economy for war production. Philippe Le Billon describes a war economy as a "system of producing, mobilizing and allocating resources to sustain the violence."
Military theory is the study of the theories which define, inform, guide and explain war and warfare. Military theory analyses both normative behavioral phenomena and explanatory causal aspects to better understand war and how it is fought. [1] It examines war and trends in warfare beyond simply describing events in military history. [2]